Last week, I wrote about my first experience with Primerica and their incredible ability to convince people to work for them. However, I was about to encounter this company once again in my life. One of my friends quit his job to work for Primerica a short time before I went to that first meeting. A year had passed and he was still working for them, saying that he was building his own company within Primerica. As I do have the profile of a successful salesman, he approached me when he felt comfortable with the idea of recruiting a friend.
I was enthusiastic about speaking with one of my friends about Primerica as I figured that he would tell me the truth about how it works. The whole pyramid scheme was scary and I had a lot of questions. This question and answer session went on and on for over a year as it was very complicated to get an answer that would not lead to another question. So, here are most of the questions and answers we discussed.
What is Primerica, What is your purpose as a Primerica advisor?
– Our role is to help out other people with their financial needs. Too often, they are left alone as banks are only interested in selling their products and not helping clients. The population needs guidance with regards to their finances and we are there to provide them with great service. It usually starts with a protection plan including life insurance.
How do you make money? Do you have to sell insurance?
– Well FB, you make money by building a team of salesman that will help people with their financial situation by selling Primerica’s products. The system is pretty simple: my VP recruited me so he makes a cut on all my sales and my team’s sales. Then, when I recruit individuals at my level, I also make a cut on their sales and their team’s sales as well. You can earn a commission on a sale up to four levels below you. I should become a VP in two to three years. I’m already part of the top 5% of team leaders and I just became a regional director.
Becoming a VP within the next three years? What does this mean?
– To become a VP, you need to recruit a certain number of Primerica advisors directly related to you. Then, you simply have to reach your objectives in term of premiums, investments and other requirements.
So, who is selling if you concentrate on recruiting? What does the commission chart look like?
– The people you recruit will become your sales force and you will be making a part of their commissions as you are above them. The commission chart is below the market industry simply because you have the opportunity to recruit individuals and benefit from the pyramid-like system.
Okay, then how do you recruit people and find new clients?
– Everything is produced through the word-of-mouth approach. Basically, anybody with a deep feeling of entrepreneurship and a need to help people will be considered as a potential recruit. We are looking at people that want more than a small 9 to 5 job that they are looking for financial freedom and a better future. All clients are contacted through references. So you don’t need to make any cold calls. We sit down with you and help you out to draft a list of your main references. These will be your first clients. Then, you ask your clients for more references and you build your business this way. Word-of-mouth is the best publicity around and this is why we don’t need to advertise.
How can they efficiently offer financial products with such limited financial background?
– All Primerica Advisors attend the classes they need to complete before they can sell (we are talking about insurance and mutual fund licenses here). The whole team, especially the person who recruited you, is there to compliment your training. I usually go to the first five meetings with my new advisors and I show them how to explain our products, lead the conversations and close the deals. When they have a lot of potential, I can go to ten meetings with them. I always tell them “if you want to know how to swim, come and meet me on the other side of the river. Then, I’ll help you”. I believe in people who want to work and I will do everything possible to help them out in their careers with Primerica.
Are they making money while they are in training?
– They are not, as they are still in training, and they do not have their licenses. Therefore, it is only normal that the person who trains them earns the commission from their hard work. The training process is very important for their proper development. This will often make the difference if they will succeed or not. They look at it as an investment in their own business.
I think I got the picture, let’s chance the subject now; How come Primerica has such a bad reputation on Google?
– Not everybody understands how the company works or that they have to make extra efforts in self discipline as they don’t have any boss who will look over their shoulder to see if they are working. Many people are frustrated by Primerica but they should be frustrated about themselves. When you really understand what Primerica stands for, you understand that their system is simply beautiful.
Before I get to my own conclusion, I would appreciate to hear your feedback about Primerica and your own experiences with this company. Stay tuned this Friday as I will come out with my own perception of Primerica and their system. I’ll try to be as rational as possible
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